Lowenstein Sandler represented Applied Digital Corporation (Nasdaq: APLD), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing ("HPC") applications, in closing a $150 million senior secured debt financing with Macquarie Equipment Capital, a division of Macquarie Group's Commodities and Global Markets' business (Macquarie) through its subsidiary, APLD Holdings 2.
APLD Holdings 2 issued a Promissory Note for the full $150 million in gross proceeds on November 27, 2024, and simultaneously repaid its obligations under the Senior Secured Credit Facility with CIM Group, removing encumbrances on assets outside of APLD Holdings 2, as well as the parent guarantee. The remaining net proceeds will be used to repay other outstanding debt and pay transaction expenses.
Amid the ongoing AI revolution, management believes Applied Digital is uniquely positioned to deliver cutting-edge data center solutions and GPU cloud services. With extensive access to stranded power and advanced infrastructure technologies like closed-loop liquid cooling, Applied Digital is focused on providing a hyper-efficient platform for the world's most demanding HPC and AI workloads. The Company's purpose-built data centers and cost-effective GPU cloud solutions are optimized for AI, machine learning, graphics rendering, and other high-performance computing needs, helping clients thrive in an era of rapid technological progress.
This year, Lowenstein has represented Applied Digital in the following transactions:
- $160 million strategic financing from a group of institutional and accredited investors, NVIDIA and Related Companies
- Issuance of $53.2 million convertible preferred stock for net proceeds of $50 million in a private financing arrangement with a single investor to advance HPC data center project
- Committed equity facility of up to $250 million with YA II PN, LTD., a fund managed by Yorkville Advisors Global, LP.
- Private debt facility with CIM Group of up to $200 million to accelerate North Dakota data center project
- $97.3 million sale of 200-megawatt Bitcoin mining data center
- $50 million convertible note financing with a single investor
- $125 million at-the-market offering of common stock
- Private offering of convertible notes in the aggregate principal amount of $450 million.
The Lowenstein deal team included Steven E. Siesser, Brooke A. Gillar, Lowell A. Citron, Daniel A. Suckerman, Sophia Mokotoff, James O'Grady, Deangeor Chin, Marianna Shelenkova, Emily Jewell, Elena Scialabba, Dana Quinn, Donna Calia, Billy Fausto Michaca, and Anna L. D' Eramo.